GO Hydrogen! The Hydrogen Guarantee of Origin scheme opens consultation

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) recently opened consultations on the design of Australia’s Guarantee of Origin (GO) scheme.

As explored in our previous article, Fifty Shades of Green, the GO scheme will provide a framework to track and verify emissions associated with hydrogen, renewable electricity and potentially other energy sources produced in Australia.

Initiated as part of the National Hydrogen Strategy in November 2019, the GO scheme has undergone stakeholder consultations between 2020 and 2023, with legislation expected to be in place in 2024.

The latest consultation package, released on 20 September 2023, provides detail on the GO scheme design and emissions accounting approach to enable potential participants to fully understand and provide feedback on the scheme.

GO scheme consultation package

DCCEEW is seeking feedback on the proposed GO scheme design. Feedback from stakeholders will inform the development of legislation and regulations to give effect to the GO scheme. The following documents are included in the consultation package:

1. GO scheme design paper

The GO scheme design paper details the participation framework of the GO scheme, from voluntary enrolment and data sharing to certificate creation and compliance. Relevantly, the GO scheme design paper provides a practical perspective on what participants will be able to expect from the scheme once it commences and it proposes an annual consultation process to expand the scheme into new products outside of hydrogen.

2. Emissions Accounting Approach paper

This paper defines the specific emissions accounting methodology for calculating the emissions intensity of hydrogen, including necessary formulas and default factors. Importantly, it sets out the system boundary scope for the GO scheme emissions accounting methodology, which will be a well-to-delivery gate system boundary. The well-to-delivery gate system boundary will cover the following emissions:

• • upstream emissions associated with the extraction, processing and transport of feedstocks;
  • direct emissions associated with the production of outputs from the product facility; and
  • post-production emissions associated with transport and storage of the registered product to its delivery gate.

This position is consistent with the International Partnership for Hydrogen and Fuel Cells in the Economy’s (IPHE) methodology.

Figure 1: System boundary for the GO scheme’s emissions accounting methodology (source: Emissions Accounting Approach paper)

3. Emissions Accounting Approach calculator

This calculator serves as a practical tool supporting the above emissions accounting methodology by allowing users to input their own data to estimate emissions intensity of hydrogen based on the proposed emissions accounting approach.

4. Renewable Electricity Guarantee of Origin Approach paper

This paper details the proposed renewable electricity guarantee of origin (REGO) scheme design for an enduring mechanism to track renewable electricity generation in Australia. It is designed to be flexible enough to adapt to future energy market and policy developments, including the integration of storage and time-stamping of certificates. The REGO scheme is anticipated to commence on 1 January 2025.

Consultation Feedback

Feedback from stakeholders will inform the development of legislation and regulations to give effect to the GO scheme. Stakeholders can provide their feedback to the DCCEEW via the consultation survey links set out in the table below.

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